Another update... Modifying the WMSyncCaps.xml file allowed my to adjust the pixel resolution settings for the automatic video conversion in WMP for my WinMo device (now a Motorola Q, instead of a Blackjack). But as slightlyseven noted, the video quality was still not as good as on our dedicated PMCs. Turns out that the WMSyncCaps file alse provides WMP with information as to video conversion bitrates to use. Whereas my Samsung PMC was receiving converted files at 800 kbps, my Q was only getting files at 164 kbps, which was pretty unwatchable.
I was able to resolve this by modifying the text in the xml file. There are 4 locations where the TotalBitrate and the VideoBitrate are set for the two video formats (ASF and WMV).
In those 4 locations, I changed the maximum value from 164000 and 128000 to 656000 and 592000.
Here's an example of one of the new lines:
<Property Name="WMDM/TotalBitrate">
<Range Minimum="4000" Maximum="656000" Step="1"/>
Once the XML file is updated, proceed as above, and you should be able to select higher bitrates under Tools/Options/Devices/<your device>/Properties/Quality
Much improved! I also recommend switching to the free video player TCPMP for more control over your video playing (including the ability to do 30s skips and 8s replays). V72RC1 works for my Q, although it occassionally crashes when you kill it in a task manager.